MKC vs PEP: Correlation
Measured on weekly returns over the past three years, McCormick & Company (MKC) and PepsiCo (PEP) carry a correlation of 0.46, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MKC and PEP?
Over the past 3 years, MKC and PEP moved with a correlation of 0.46, which is moderate. Little has changed lately, as the 1-year reading of 0.42 lands near the 3-year figure. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 231.7 %².
By 3-year correlation, PEP places #16 of the 34 assets tracked against MKC. Their recent paths diverged sharply: over the last 12 months PEP outperformed by 18.7 percentage points (-20.3% for MKC against -1.6% for PEP). On a rolling one-year basis the correlation drifted between 0.30 and 0.62, a moderate band.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
MKC vs PEP: side by side
| MKC (McCormick & Company) | PEP (PepsiCo) | |
|---|---|---|
| 1-year return | -20.3% | -1.6% |
| 5-year return | -28.5% | +4.9% |
| Volatility (ann.) | 26.5% | 19.1% |
| Beta vs S&P 500 | 0.24 | 0.13 |
| Max drawdown (3Y) | -44.3% | -27.5% |
| Market cap | $14.7B | $190.9B |
| P/E (trailing) | 9.2 | 18.6 |
| Dividend yield | 3.38% | 4.04% |
| Sector / category | Consumer Staples | Consumer Staples |
Year-by-year returns
| Year | MKC | PEP |
|---|---|---|
| 2022 | -12.7% | +6.8% |
| 2023 | -15.7% | -3.3% |
| 2024 | +14.0% | -7.6% |
| 2025 | -8.3% | -1.8% |
| 2026 | -18.5% | -0.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MKC and PEP good diversifiers for each other?
Reasonably. At 0.46, MKC and PEP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MKC and PEP?
As of 2026-08-27, the correlation of weekly returns between MKC and PEP is 0.46 over 3 years, 0.42 over 1 year and 0.49 over 5 years.
Is PEP a good diversifier for MKC?
Reasonably. At 0.46, MKC and PEP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 mean?
A reading of 0.46 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mkc-vs-pep.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mkc-vs-pep/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MKC correlations · PEP correlations
